Price Analysis

Rising Supply Pressure Threatens Bitcoin Price for 6% Drop this Week; Time to Reaccumulate?

BTC Price Prediction: Bitcoin price is poised for a longer correction as buyers failed to sustain higher ground.

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Published 01 May, 2023 | 11:54:52 AM UTC

Rising Supply Pressure Threatens Bitcoin Price for 6% Drop this Week; Time to Reaccumulate?

Bitcoin-the largest cryptocurrency started the May month on a bearish note, registering an intraday loss of 2.36% at 6:50 am ET. This decline formed a new lower high in the daily time frame chart reflecting an early sign of trend reversal and continuation of ongoing correction. With sustained selling the BTC price is poised for 6% before hitting a significant support.

Key Points:

A new resistance trendline governs the ongoing correction in Bitcoin price
The $27000 mark stands as an important support of coin holders
The intraday trading volume in Bitcoin is $18.4 Billion, indicating a 74% gain.

Source-Tradingview

Last week’s recovery in Bitcoin price fails to surpass the last swing high of $30700 and takes a U-turn from the psychological resistance of $30000. Joining the peaks of these highs, a new resistance trendline can be drawn to mark the direction of the ongoing correction phase.

With a significant price drop today, the BTC price plunged below the local support of $28875. This breakdown may accelerate the selling pressure and plunge the prices 6% down to reach the combined support of $27000 and 23.6% Fibonacci retracement level.

Also Read: Bitcoin Declines Amid JPMorgan, PNC’s First Republic Bank Buyout Bid

A potential breakdown below it will give additional confirmation for a prolonged downfall and tumble the prices by another 7% to reach the $25000 psychological support.

Anyhow, the Bitcoin price may continue the ongoing correction phase until the overhead resistance trendline is intact.

Technical Indicator

Relative Strength Index: the daily RSI slope back to the midline indicates a neutral sentiment among market participants.

Exponential Moving Average: With the recent drop, the Bitcoin price failed to sustain above the 20-day EMA slope, and dived below it. This breakout gives an additional edge to short-sellers.

Bitcoin Price Intraday Levels

Spot rate: $28602
Trend: Bearish
Volatility: Medium
Resistance levels- $28875 and $30750
Support levels- $27000 and $25000

Brian Bollinger

From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com

Published by

Brian Bollinger

Published 01 May, 2023 | 11:54:52 AM

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